The recent report by Fitch Ratings shows that due to the considerable weakening of the Turkish lira, publicly rated Turkish corporate issuers' encounter with the rise in funds from gross leverage of operations could lead some of them to surpass Fitch's negative rating for those companies by the end of the year. On the other hand, the agency said these losses stemming from the depreciation of the lira could be offset by income from exports received in foreign currencies. Considering specific sectors, food companies may face a gross leverage increase of one-and-a-half fold in 2015. These food companies will also be exposed to the danger of limited foreign exchange revenue. Even though it is customary in the industry to pass such costs onto customers, because of the current economic conditions and the relatively high prices compared to the previous periods, this option seems unlikely.
